Wal-Mart Drops NYC Plans

"'I don't think it's worth the effort,' said Wal-Mart chief Executive H. Lee Scott Jr. on the abondonment of plans to open a Wal-Mart store in New York City."

"His remarks amounted to a surprising admission of defeat, given the company's vigorous efforts to crack into urban markets and expand beyond its suburban base in much of the country. In recent years, Wal-Mart has encountered stout resistance to its plans to enter America's bigger cities, which stand as its last domestic frontier."

"Much of the opposition to Wal-Mart in cities like New York is led by unions. Organized labor, fearing that the retailer's low prices and modest wages will undercut unionized stores, have built anti-Wal-Mart alliances with Democratic members of city councils."

"Wal-Mart, which has nearly 4,000 stores in the United States, has sought to open stores in Rego Park, Queens, and in Staten Island, but both plans fell through in the face of intense union, community and political opposition."

"Mr. Scott said yesterday that the opposition to Wal-Mart in New York, Chicago, Cleveland, Los Angeles and other cities had a common thread: 'The glue is the unions.'"

"Despite setbacks in each of these cities, Wal-Mart has had success in urban areas. In Chicago, for example, Wal-Mart opened a store last year that attracted thousands of job applicants and has, Mr. Scott said, performed better than expected."